Sony has reduced its estimated profits for its current business year by 31 per cent.

The company also admitted itself to have failed to meet stated targets in its portable audio business, where it has so far failed to match Apple.

Increased competiton and falling prices of products in the consumer electronics category have also hurt the company

Sony expects a group operating profit of $1.07 billion for the year (ends March 31), down around a third against previous targets. The company shares closed down 50 cents at $38.80 yesterday.